The order, issued Tuesday, requires Tether to provide balance sheets, income statements, cash flow statements and income statements. It also ordered Tether to provide records of all merchants, cryptocurrency and stablecoin transfers, and accounts it has at Bitfinex, Poloniex, and Bittrex.
Judge Failla explained that these documents would be necessary to prove that USDT is backed by US dollars and other real assets. Tether’s lawyers had previously argued that the order was “incredibly excessive” and “unduly burdensome”, but the judge found the documents “undoubtedly important”.
What’s next for Tether?
Tether (USDT) remains in the Top 3 on CoinMarketCap, but its stablecoin reign has been shaky since New York State Attorney General Letitia James sued the company in 2019. She alleged that Bitfinexwhich is owned by the issuer of Tether, had artificially manipulated the ledgers to hide an $850 million loss.
The company admitted that Tie It was only 74% backed by real assets and has since settled a series of lawsuits, including in February 2021 with an $18.5 million fine.
However, questions remain about the company’s actual reserves and now Judge Failla has made the most extreme demand for evidence.
It will be interesting to know all the details about Tether accounts and settle this debate once and for all; Judge Failla has just made it possible.